Volkswagen Group will pay another $1.2 billion in Germany over diesel scandal

Volkswagen Group will pay another $1.2 billion in Germany over diesel scandal

Volkswagen Group will pay another $1.2 billion in Germany over diesel scandal

Jean Garcia
|
14 June, 2018, 10:30

Volkswagen has been fined €1bn (£880m) over diesel emissions cheating in what amounts to one of the highest ever fines imposed by German authorities against a company.

VW said that it accepted the fine, and would not appeal. It's the latest move against the auto manufacturer, which admitted in 2015 that it had equipped cars with software that turned on emissions controls when vehicles were undergoing anti-pollution tests in the US.

In fact, output of harmful fine particulates and nitrogen oxides (NOx), which can cause respiratory and heart diseases, was far higher than legally permitted.

Both are suspected of knowing earlier than they have so far admitted about the cheating, meaning they failed in their duty to inform investors in the vehicle giant about the financial risks. The company has since paid out over $7 billion to compensate customers in the US.

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Luxury carmaker BMW and Mercedes-owned Daimler have both had their offices raided by investigators searching for evidence of possible cheating.

The scandal, which came to light in the United States in 2015 after VW admitted to circumventing the emissions control system there for diesel vehicles sold since 2009, has so far cost the German automaker $4.3bn (£3bn) in federal penalties over there.

The prosecutor's office in Braunschweig ordered the fine against the carmaker for organizational deficiencies in supervision which failed to prevent "impermissible software functions" from being installed in 10.7 million cars between 2007 and 2015.

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